The Quantitative Analysis On The Relationship Between Urbanization And Adjustment Of Industrial Structure

Since the carrying out of the policy of reform and opening up, China's urbanization levelis rising continuously and the industrial structure is going up to higher level. But comparedwith the industrialization level of the world, the urbanization of our country has fallen farbehind and it can not keep up with the economy development or the level of industrializationof our country. As far as the employment structure and output value structure areconcerned, there is a great distance between the industrial structure in our country and that ofthe developed countries. The low urbanization level and the unreasonable industrial structureare the two main problems faced by our country. The underdevelopment of the urbanizationhas brought negative consequences to the development of economy and society. Thedeviations of industrial structure has also hindered economy growth. From above, it can beconcluded that it carries great significance to study the relationship between urbanization andindustrial structure, and to analyze the reasons of underdevelopment of urbanization and thefactors that hinder the upgrading of industrial structure.The development of urbanization and the adjustment of industrial structure interact witheach other. Urbanization can be defined as the immigration of country population to cities,hence the adjustment of industrial structure will be improved. On the other hand, theadjustment of industrial structure can also promote urbanization. With regard to therelationship of industrial structure and urbanization, considerable studies exist both home andabroad. But limited by available data, the scholars in our country can not carry out asystematic research on this aspect and empirical studies are seldom seen. On the basis ofexisting documents, this paper intends to make a thorough study on the development of therelationship of urbanization and industrial structure, since 1979 to 2004, with the method ofco-integration test and Granger-causality. It is found that urbanization and industrial structureco-integrate, that there exists a bidirectional Granger-causality between the urbanization andthe tertiary industry, that there exists a unidirectional Granger-Causality between urbanizationand the first industry, and that there doesn't exist the Granger-causality between urbanizationand the second industry.